Crimson Tide PLC (AIM:TIDE) shares rose by nearly 8% as the mpro5 solution provider said its revenue for full-year 2022 exceeded £5.3mln, an increase of more than 30% over the prior year's figure of £4.1mln.
In a trading update for the year ended 31 December 2022, the company said its revenues were boosted by contracts with new and existing clients, highlighting the finalising of significant wins in the catering and facilities management sectors, and the securing of an exciting new client in the utility sector.
It said: "We were particularly pleased with the renewal of a contract with one of the UK's largest retailers, which will contribute to further growth in 2023 and beyond. Churn remained below 5%, with no significant contract losses."
Crimson Tide said its gross margin remained consistent at approximately 84% and noted that an increased performance at the top line will result in a smaller-than-expected loss at the EBITDA level, despite the deployment of investment capital in marketing and growth.
The company also said its loss before tax will be smaller than expected - an improved performance - due to the enhanced sales figures and its decision to be cautious in marketing spend in the second half.
Year-end cash stood at over £3.5mln, Crimson Tide said, noting that it entered 2023 with a record annual recurring revenue of £5.8mln (2021: £3.8mln).
In early morning trade on Wednesday, Crimson Tide shares were 7.8% higher at 2.75p.